Tuesday, September 23, 2008

Want to build a home? The time really is now!

Everyone loves a great deal. From finding a highly sought after item on sale to receiving better service without paying more, American consumers appreciate the value in getting more for less. Anyone buying a new home right now is getting a great value. Most material costs have risen dramatically over the last twelve months, yet the cost of a new home has either fallen or remained steady in most markets.

Commodity prices, shipping costs, energy costs, insurance premiums, and other cost drivers have risen in double digit fashion. In order to survive in the current market, efficiency has become the path to survival. New technologies must be embraced and properly executed. In many cases, this will improve the overall quality of the projects.

Specifications and building timelines have tightened dramatically as expectations for what is produced has climbed. The buildings being constructed today are more energy efficient, safer, and require less maintenance than any time in our country’s history. Yet, the cost of a newly constructed home is at its lowest level in half a decade.

Due to the prolonged new home market correction, a cleansing has occurred in the market place. The better builders, subcontractors, and tradespeople have survived. Therefore, now more than ever you have the best chance of having the best craftspeople working on your new home project. The project should go more smoothly at this time and should be constructed well above industry standards if a reputable builder is chosen for the job.

If the time works for you financially and logistically, there really isn’t a downside to building now. Waiting to build; now that’s where I see the risk. There are quite a few people out there planning to build once their homes sell. As the market turns, these homes will inevitably sell, and the demand for building new is going to rise at a rapid rate. As the demand grows, the pricing should finally grow to account for the increased costs that have been building over the last couple years.

The level of quality will also not be where it is now. As I mentioned, the best of the best in the trades are working right now. As demand grows, the less experienced and lower quality tradespeople will be added back into the mix.

In terms of value, it really is a great time to build a home!